Financial institution Standard Chartered and blockchain company Animoca Brands join forces to pursue a license for a stablecoin in Hong Kong.
Hong Kong Takes a Step Forward in Digital Asset Regulation with Anchorpoint's Stablecoin Initiative
Hong Kong is making strides in its efforts to balance crypto regulation and attract legitimate players to its market. The city, known as a global hub for the exchange of goods and services, is now looking to leverage stablecoins to enhance these activities.
In a significant move, Anchorpoint, a joint venture between Standard Chartered and Animoca Brands, has announced its intention to apply for a license to issue stablecoins under Hong Kong's new digital asset regime. This initiative aims to issue a Hong Kong-dollar-backed stablecoin under a fully regulated framework, leveraging the combined expertise of Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT).
The Hong Kong Monetary Authority (HKMA) has launched a fiat-referenced stablecoin licensing regime, which officially came into effect on August 1. Under this regime, the stablecoin would be issued and redeemed under the HKMA’s supervision, complying with the newly effective "Stablecoins Ordinance." This mandates full reserve backing, risk management, and redemption rights, fostering greater market confidence.
The stablecoin can be used for faster, cheaper cross-border and domestic payments, improved liquidity within Hong Kong’s digital asset markets, and as a bridge currency in decentralized finance (DeFi) and blockchain applications supported by Animoca’s ecosystem. By pioneering a licensed HKD stablecoin, Anchorpoint aims to reinforce Hong Kong's position as an international financial center and emerging digital assets hub, contributing to sustainable growth in the fintech and digital asset sectors.
The project supports China's broader strategy to promote the offshore yuan (CNH), potentially challenging the dominance of U.S.-dollar-backed stablecoins and expanding yuan’s role in international trade and finance. The regulation could unlock stablecoin adoption and innovation, as more individuals and businesses may feel assured about participating in stablecoin ecosystems under regulatory oversight.
Yat Siu, the co-founder and executive chairman of Animoca Brands, expressed that regulation could unlock stablecoin adoption and innovation. He suggests that a locally issued stablecoin could facilitate cross-border payments, retail transactions, and B2B services in Hong Kong. However, Siu acknowledges that the market is still determining the exact use cases for stablecoins in practice.
Mary Huen, Chief Executive Officer for Hong Kong and Greater China and North Asia at Standard Chartered, stated that stablecoins will play an important role in building a sustainable digital asset ecosystem in Hong Kong. However, Standard Chartered did not immediately respond to questions about specific products or uses for the stablecoin.
The new stablecoin framework in Hong Kong allows for the issuance of fiat-referenced stablecoins. Companies must obtain a license for issuing or marketing fiat-backed stablecoins to retail investors under Hong Kong's new legislation. This regulatory environment aims to balance innovation with financial stability, which is expected to weed out speculative endeavors and establish trusted stablecoin operators that adhere to high compliance standards.
In summary, Anchorpoint’s stablecoin initiative is poised to facilitate secure and regulated digital currency transactions, enhance interoperability across Hong Kong’s financial and telecom sectors, and strengthen the city’s competitiveness in the global digital asset landscape, all underpinned by HKMA’s regulatory framework. The integration of expertise from Standard Chartered, Animoca Brands, and HKT is expected to result in a seamless digital currency product within Hong Kong’s financial and telecom ecosystems.
- Anchorpoint, a joint venture between Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT), plans to issue a stablecoin under Hong Kong's new digital asset regime.
- The Hong Kong Monetary Authority (HKMA) has introduced a fiat-referenced stablecoin licensing regime, requiring full reserve backing, risk management, and redemption rights.
- The stablecoin is intended for faster, cheaper cross-border and domestic payments, improved liquidity within Hong Kong’s digital asset markets, and use in decentralized finance (DeFi) and blockchain applications.
- The regulation could lead to increased adoption of stablecoins, as more individuals and businesses may feel assured about participating in stablecoin ecosystems under regulatory oversight.
- The integration of technology in financial services, represented by the stablecoin initiative, is a significant step in Hong Kong's ambition to reinforce its position as an international financial center and emerging digital assets hub.
